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08.07.2004 – 15:57

KfW

KfW issues 3-Year USD 3 Billion Bond

    Frankfurt/Main, Germany (ots)

Today KfW issued the seventh USD 3 billion global bond under its US Dollar Programme. The bond is rated AAA/Aaa/AAA by Fitch Ratings, Moody's and Standard & Poor's. It matures on July 16, 2007 and pays a coupon of 3.25%. It was issued at a reoffer price of 99.85 and a spread of 38 bp above the three-year US Treasury. The lead managers for the transaction are CSFB, the Royal Bank of Scotland and UBS. Further managers are BNP Paribas, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Nomura and the Royal Bank of Canada.

    "This was the first larger USD issue since the Fed raised the interest rates.  We addressed international investors looking for a liquid bond in the three-year range and met with very intensive demand. We are very glad about the high share of US investors in the order book", comments the head of capital markets at KfW, Horst Seissinger, on the order book. USA accounts for 31%, Asia (not including Japan) for 36%, Japan for 7% and Europe for 18%. With a volume of EUR 4.5 billion the order book is heavily oversubscribed and comprises approximately 160 individual orders. The breakdown by investor category gives the following picture:

    Central banks:          38%
    Banks:                        28%
    Funds:                        25%
    Insurance companies:  7%
    Others:                        2%

    "We started selling the bond at a spread of 38 to 40 bp above the corresponding US Treasury, but since demand was very strong we revised the spread early to 38 to 39 and opted for 38 bp. We are more than happy with the pricing", said Horst Seissinger.

    In December last year KfW had announced to issue at least two global bonds under its US$ Programme. With this second bond issue of the year 2004 KfW reached its target. Depending on the market conditions another bond may be issued under the programme in the second half of the year.

    Bond Features     KfW 3 bn USD Global Bond VII - 3.25% - 2004/2007

    Issuer: KfW (Kreditanstalt für Wiederaufbau)
    Guarantor: Federal Republic of Germany
    Rating: AAA (fitch Ratings)/ Aaa (Moody's) / AAA (Standard &      
    Poor's)
    Amount: USD 3,000,000,000
    Maturity: July 16, 2007
    Coupon: 3.25% p.a., payable half-yearly
    Coupon payment dates: July 16, January 16
    Reoffer price: 99.85
    Yield: 3.303% p.a.
    Format: Global bond
    Listing: Luxembourg

    Lead Managers (3):     CSFB     Royal Bank of Scotland     UBS

    Co-Lead Managers (12):     BNP Paribas     Barclays     Citigroup     Deutsche Bank     Goldman Sachs     HSBC     JP Morgan     Lehman Brothers     Merrill Lynch     Morgan Stanley     Nomura     Royal Bank of Canada

ots Original Text Service: KfW Internet: http://www.presseportal.de

For further information: Nathalie Drücke, Phone: +49 (0)69 7431-2098, E-Mail: nathalie.druecke@kfw.de

KfW, Palmengartenstraße 5-9, 60325 Frankfurt Abteilung Konzernkommunikation Tel. 069 7431-4400, Fax: 069 7431-3266, E-Mail: presse@kfw.de, Internet: www.kfw.de

Original content of: KfW, transmitted by news aktuell